Skip to main content

View Diary: Krugman On "The Joy Of Sachs," As Frontrunning Truths Emerge (292 comments)

Comment Preferences

  •  Too big to fail (1+ / 0-)
    Recommended by:
    polar bear

    We've been told we had to give taxpayer money to the big banks because they were, "Too big to fail". So what does Obama's Goldman-Sachs people do? They let some of the big banks (favored by Goldman-Sachs) take over other big banks (hated competitors of Goldman-Sachs), making them even bigger. Now how does this fix the problem of being, "Too big to fail?"

    A new order is emerging on Wall Street after the worst crisis since the Great Depression – one in which just a couple of victors are starting to tower over the handful of financial titans that used to dominate the industry.

    Yesterday, JPMorgan Chase became the latest big bank to announce stellar second-quarter earnings. Its $2.7 billion profit, after record gains for Goldman Sachs, underscores how the government's effort to halt a meltdown has also set the stage for a narrowing concentration of financial power.

    Both banks have benefited from billions of dollars in taxpayer support and cheap government financing to climb over banks that continue to struggle. They are capitalizing on the turmoil in financial markets and their rivals' weakness to pull in billions of dollars in trading profits.

    Then, there are the legions of regional and small banks that are falling in greater numbers across the country. While many have racked up large losses, they stand to bleed more red ink if the recession wears on. Fifty-three have failed this year, and the Federal Deposit Insurance Corp. is girding for scores to follow.

    Sanford doesn't want tax money spent to help you keep your job, but he does want to spend it to get himself laid

    by William Domingo on Fri Jul 17, 2009 at 04:13:38 PM PDT

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site